The volume of underperforming U.S. CMBS loans in special servicing
registered its sharpest quarterly decline after flirting with $100
billion just two years ago, according to the latest index results from
Fitch Ratings.

After peaking at $91.7 billion in 2010, CMBS loans in special servicing
dropped nearly $6 billion to $74.8 billion at the end of third-quarter
2012 (3Q'12). Other encouraging signs for the sector include declines in
both the number of assets per asset manager and the balance of loans
transferred into special servicing, which the new report details further.

'The backlog of underperforming CMBS loans is still formidable, but
servicers are gradually seeing fewer loans to work out and increased
refinancing opportunities, which bodes well for the next year,' said
Managing Director Stephanie Petosa.

The US CMBS Special Servicing Index is the latest in a series of
structured finance index reports that Fitch is rolling out. The index
reports will be updated quarterly. The Index is available at 'www.fitchratings.com'
or by clicking on the above link.

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